How do you charge VAT?
Thread poster: Rebecca Lyne

Rebecca Lyne
France
French to English
+ ...
Aug 5, 2009

I would like to hear from any translators in Europe, particularly in France, how you go about billing VAT?

Do you build it into your per word or project rate or do you simply bill VAT on top of your project rate?

Also, how do you communicate this to your client?

Thanks!


 

writeaway  Identity Verified
French to English
+ ...
If you're in the US, VAT doesn't apply to you Aug 5, 2009

rebeccalyne wrote:

I would like to hear from any translators in Europe, particularly in France, how you go about billing VAT?

Do you build it into your per word or project rate or do you simply bill VAT on top of your project rate?

Also, how do you communicate this to your client?

Thanks!


People in US don't have to worry about VAT, afaik.


 

gianfranco  Identity Verified
Brazil
Local time: 07:09
Member (2001)
English to Italian
+ ...
Two notes about the VAT system Aug 5, 2009

rebeccalyne wrote:

I would like to hear from any translators in Europe, particularly in France, how you go about billing VAT?

Do you build it into your per word or project rate or do you simply bill VAT on top of your project rate?

Also, how do you communicate this to your client?

Thanks!


VAT is listed separately, adding it to the amount billed for the service.
Incorporating VAT in the price, even if you say "VAT included", is not correct. That is simply a higher price, which has nothing to do with VAT.

Note that to charge VAT you need to be running your business in a country where there is a VAT system in place, I mean "registered" there, not just having there your client.
If you activity is US based you cannot add VAT to your invoices.

There are also rules for applying VAT to clients resident in other VAT countries, and different rules for private clients (individuals, not registered for VAT) as opposed to companies (which are VAT registered), but that is probably, if the previous points solve your problem, outside of your needs.

Gianfranco


[Edited at 2009-08-05 13:36 GMT]


 

Angelica Kjellström  Identity Verified
Sweden
Local time: 12:09
German to Swedish
+ ...
Swedish VAT Aug 5, 2009

Hi Rebecca Lyne,

In Sweden, 25 % VAT is put on top of the end sum. However, this only applies for byuers in Sweden. If a Swedish translation is ordered from abroad, no VAT is charged.

Kind regards,

Angelica Kjellström


 

Paul Malone  Identity Verified
France
Local time: 12:09
Member (2004)
French to English
+ ...
You add it as a percentage of the invoice. Aug 5, 2009

When you raise an invoice for the translation, the VAT is added on at the end to give a final total that includes VAT.

You use the currently applicable VAT rate in the country concerned. For example, the current VAT rate in France for translations is 19.6%. The percentage varies from country to country and also changes from time to time. There are also other rates that may be applicable to other products or services.

I use an invoicing system that builds it into the invoice automatically.

However, writeaway is correct to say that you would not need to worry about VAT if you are based in the US. For example, if you work in the US and you want to bill a French client for a translation, you would simply raise one of your usual bills with no reference to VAT.


 

Williamson  Identity Verified
United Kingdom
Local time: 11:09
Flemish to English
+ ...
US: No VAT Aug 5, 2009

The US does not have a VAT-system, it has sales tax which differs from state to state.
So, how can you add VAT? VAT is not an "extra" for the translator, but a tax to be paid either to the E.U.- Member State where you live, if your customer is based in the same E.U. Member-State or is transferred to the point of sale if your customer is based in another E.U.-Member State and has a VAT-number. In the end, the customer/consumer always pays VAT. The salesperson/freelancer acts as an intermediary taxman for the state.
You live in the US, so to whom are you going to pay VAT at the end of the trimester.

[Edited at 2009-08-05 14:05 GMT]


 

Daina Jauntirans  Identity Verified
Local time: 05:09
German to English
+ ...
No VAT Aug 5, 2009

Hi Rebecca,

Some customers have asked me to write "No VAT required" or something to that effect or another blurb explaining their VAT liability on invoices. Otherwise you don't have to worry about it.

PS You don't have to charge sales tax either.

[Edited at 2009-08-05 14:47 GMT]


 


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